Upcoming tax changes effective from the beginning of 2027
Tax changes effective from the beginning of 2027
Dear business partners and friends,
We would like to inform you about the main upcoming tax changes effective from the beginning of 2027 in the areas of taxation, payroll, and related administrative obligations, which are expected to take effect primarily from 1 January 2027.
Although part of the proposed measures is still undergoing the legislative process, it is already advisable to familiarize yourself with their key principles and consider their potential impact on your business, employees, and accounting or payroll agenda.
We believe that thanks to our timely effort to keep you informed about the tax changes effective from the beginning of 2027, we will be well prepared together. However, we regret that some of these changes may still be modified and that there may be very little time to react.
In our opinion, the state should be much more predictable in this area and should not introduce changes at the last minute, as such an approach significantly affects the business environment in the Czech Republic. Unfortunately, this is not the first case of “time pressure” in the adjustment of tax and labour‑law regulations. Nevertheless, we are confident that we will once again manage everything that lies ahead.
1. Reintroduction of Electronic Sales Records (EET 2.0)
One of the most discussed changes is the proposal to reintroduce electronic sales records in a new, administratively simplified form.
The proposed system includes:
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real‑time reporting of selected sales,
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elimination of the obligation to print receipts for customers,
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reduced scope of reported data,
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simplified administration compared to the original EET system,
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exemptions for certain small entrepreneurs and specific activities.
The exact scope of reporting, the range of obligated entities, and the effective date cannot yet be considered final. Nevertheless, it is advisable to prepare for this possibility to avoid unpleasant surprises in the future.
2. Abolition of Withholding Tax on Certain Employment Income
From 2027, the taxation method for selected employment income currently subject to withholding tax will change. Withholding tax will be replaced by a separate monthly tax advance.
This change is linked to the introduction of a unified monthly employer report and will affect:
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agreements to perform work (DPP),
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agreements on work activity (DPČ),
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employees with irregular income,
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payroll and HR departments.
3. Changes to Employee Benefits
Further adjustments to the tax treatment of employee benefits are also being discussed. These changes may affect leisure, recreational, social, and health‑related benefits.
Expected changes include:
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abolition of the current limit for most leisure benefits,
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introduction of a separate annual limit of CZK 20,000 for recreation and holidays,
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preservation of tax advantages for selected health benefits,
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expansion of certain employer‑provided social and health benefits.
4. Return of Selected Tax Credits for Individuals
One of tax changes effective from the beginning of 2027, several previously abolished tax credits are expected to be reinstated, including:
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the student tax credit,
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the child placement credit (so‑called “kindergarten fee”),
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updated rules for parents applying these credits.
5. Higher Income Thresholds for Filing Personal Income Tax Returns
A proposal has been made to increase the income thresholds that trigger the obligation to file a tax return. The aim is to reduce administrative burden, particularly for taxpayers with secondary or occasional income.
6. Tax Exemption for Tips in the Gastronomy Sector
A new proposal introduces tax exemption for tips received by employees in gastronomic establishments. This change responds to long‑standing practical issues in taxing such income.
7. Other Expected tax changes effective from the beginning of 2027
Additional areas currently under discussion include:
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continued digitalization of communication with the tax authorities,
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adjustments to VAT rules following the extensive amendment effective from 2025,
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changes to the taxation of employee stock ownership plans (ESOP),
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further simplification of tax administration and electronic filings.
FIKU Recommendations
Since several of the above‑mentioned tax changes effective from the beginning of 2027 are still undergoing the legislative process, we recommend monitoring their development. FIKU will continue to follow the approval of individual amendments and will inform you in due course about their final form.
If you have any questions or would like an individual assessment of how the upcoming tax changes may affect your company, please contact your financial or payroll specialist.
Together, as always, we will manage it.
With kind regards,
The FIKU Team
